Liquor prices in Telangana are expected to increase by 12% to 15% as the ongoing war in West Asia disrupts supply chains and raises production costs. Distillery managements have indicated that this price hike is inevitable, particularly as the deadline for the liquor price review has passed without any adjustments since May 2023.
The conflict between Iran and Israel has severely affected the natural gas supply, which is crucial for glass bottle manufacturing. As a result, production in major glass manufacturing centers across the country has dropped by nearly 40%, leading to a significant increase in the price of empty bottles by 20%.
Companies have formally requested the government to allow for the price increase, citing the heightened costs of production and supply chain disruptions. The situation is further complicated by a 20% reduction in beer supply, coinciding with the high demand typically seen during the summer months.
In response to these challenges, a judicial committee has been formed to review the price hike issue, led by a retired judge. This committee’s findings could play a crucial role in determining how the state will address the impending price increases.
Observers note that the last price review was meant to occur every two years, but the lack of adjustments since May 2023 has left many in the industry anxious about the future.
As the situation unfolds, the impact of these price hikes on consumers remains to be seen. Details remain unconfirmed regarding the exact timeline for any changes in pricing or the committee’s recommendations.
